LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea

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LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea
FACTS & FIGURES

                                              RUSSIA

          LONGSTANDING COMMITMENT
           AND EFFICIENT PARTNERSHIP
                  Securing  supplies by engaging
                  Versorgungssicherheit  durch Engagement
                  directly
                  direkt anatder
                              theQuelle
                                  source
                  Russia is among the world’s most richly endowed countries when it comes to
                  natural resources: about one fifth of all known natural gas reserves are situated
                  in Russia. The country therefore has the largest gas reserves worldwide. Russia
                  also lies in sixth place in the world oil rankings with more than 105 billion barrels
                  of proven oil reserves*. Russia is the biggest supplier of natural gas to the European
                  Union. For Wintershall Dea, Europe’s leading independent natural gas and crude
                  oil producer, Russia is the key core region in its portfolio and the region with the
                  largest planned increase in production.

                  Wintershall Dea is currently involved in several joint projects concerned with the
                  exploration and production of hydrocarbons in Western Siberia and southern
                  Russia. Together with our Russian partners, we are focusing on stable and long-
                  term collaboration. Thanks to our ongoing exchange of experience and know-how
                  a model of partnership has emerged that has been supplying Europe with energy
                  for nearly 30 years.

                  * BP Statistical Review of World Energy 2019

Factsheet
Wintershall Dea
March 2020

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LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea
Successful collaboration in
exploration & production
Achimgaz, a joint venture between the Gazprom subsidiary Gazprom Dobycha
Urengoy (50 per cent) and Wintershall Dea (50 per cent), celebrated its 15th
anniversary in September 2018. The joint venture produces natural gas and
condensate from the complex Achimov Formation in the Urengoy field (block 1A)
in Novy Urengoy, situated in Western Siberia, about 3,500 kilometres northeast
of Moscow.

Operating a large-scale facility for separating natural gas and condensate with
five processing lines, Achimgaz finalized the drilling campaign in 2019 with a total
of 108 production wells, thus allowing an annual production of about ten billion
cubic metres* of natural gas to be achieved.                                              The Achimgaz joint
                                                                                          venture produces around
The next milestone in the partnership between Gazprom and Wintershall Dea was             ten billion cubic metres*
reached with the foundation of the Achim Development joint venture. An asset              gas per year.
swap with Gazprom was completed in September 2015, giving Wintershall Dea a
25.01 per cent share in blocks 4A and 5A of the Achimov Formation in the Urengoy
field. In April 2018, Achimgaz was commissioned as general contractor for blocks
4A and 5A, allowing it to build on and benefit from the experience gathered in
block 1A. The first construction phase started in 2018, with 40 production wells.
The second phase is expected to include over 100 production wells and new
processing facilities.

The Yuzhno-Russkoye natural gas field is another major natural gas production
project shared by Gazprom and Wintershall Dea in Siberia. The field was dis-
covered in 1969 and is one of the largest in Russia. The natural gas reservoir was
commissioned in 2007, making Wintershall Dea the first German company to
participate in production of natural gas in Western Siberia. Wintershall Dea has a
35 per cent share in the commercial success of the field through the joint company
Severneftegazprom, which celebrated its 20th anniversary in 2018.

The joint venture reached a plateau production of 25 billion cubic metres* of             Siberia’s cold weather
natural gas per year** in 2009, with more than 140 production wells already               is a major challenge for
in operation.                                                                             people and technology.

Severneftegazprom has also taken on a pioneering role in developing the Turonian
Formation, for which little practical experience has been gained to date. The
technological competence and expertise of the partners is crucial for the success-
full implementation of the project. Compared to the deeper Cenomanian layer,

* russian standard cubic metres (rscm), ** Source: Severneftegazprom Annual Report 2018

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LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea
production from the Turonian Formation is considered more complex. The joint
venture began operating the first test wells in the Turonian rock strata at the end
of 2011. Over 120 new wells will be drilled between 2020 and 2033 as part of the
production start-up from the Turonian formations, with the aim to increase the
plateau production at Yuzhno-Russkoye field.

The fourth joint project in Russia is the German-Russian joint venture Wolgodeminoil.
The company, which produces crude oil and natural gas, is operated by Wintershall
Dea together with RITEK, a subsidiary of the Russian crude oil producer LUKOIL
(50:50). In 2017, Wolgodeminoil celebrated its 25th anniversary, making it the
longest running joint venture between a Russian company and a western European          Wolgodeminoil is the long-
partner in the E&P sector.                                                              est-standing joint venture
                                                                                        between a Russian and a
                                                                                        Western European partner.
Infrastructure projects
The Nord Stream Baltic Seapipeline construction started in April 2010 and became
fully operational at the beginning of October 2012. Extending over a length of
1,224 kilometres, it links the gas reserves in Siberia directly with Germany via two
parallel pipelines. Both strings together have a transport capacity of 55 billion
cubic metres* of natural gas per year. Wintershall Dea has a 15.5 per cent share
in the project. Nord Stream is connected to the existing European natural gas pipe-
line network via the connecting pipelines OPAL (Ostsee-Pipeline-Anbindungs-
Leitung – Baltic Sea Pipeline Link) and NEL (Nordeuropäische Erdgasleitung –
North European Gas Pipeline). The 472-kilometre-long OPAL pipeline runs from
where Nord Stream comes on land at Lubmin near Greifswald to the Czech
Republic, while the 441-kilometre-long NEL pipeline runs from Mecklenburg-
Western Pomerania to Lower Saxony. OPAL has an annual transport capacity of
36 billion cubic metres* and NEL around 20 billion cubic metres* of natural gas.

Together with western European partners, Wintershall Dea is a financial investor
in the Nord Stream 2 pipeline project, for which Gazprom is the sole shareholder
of the project company Nord Stream 2 AG. The offshore Nord Stream 2 pipeline
and the fully regulated European Gas Pipeline Link (EUGAL) will create new supply
routes and make the European transport network more robust and more flexible.
The Nord Stream 2 gas pipeline, with a total capacity of 55 billion cubic metres*,
is a further safe, efficient and eco-friendly route for Russian gas supplies and
provides a direct link to the European consumers. The first pipeline string of EUGAL,   The OPAL connection
for which transmission system operator GASCADE is in charge, was commissioned           pipeline has an annual
in January 2020. The second pipeline string is expected to be finished by the end       transport capacity of 36
of 2020. The around 480-kilometre-long natural gas pipeline will transport the          billion cubic metres*of
natural gas from Nord Stream 2 flexibly and reliably within Germany and to              natural gas.
Southeastern Europe.

* russian standard cubic metres (rscm)

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LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea
A role model for cooperation
The “Scientific and Technical Cooperation” (STC) has been setting standards in
Russian-German relations for 25 years: the joint initiative set up by Wintershall Dea
and Gazprom promotes the exchange of experience and know-how between the
two companies. Employees from Wintershall Dea, Gazprom and BASF are develop-
ing innovative solutions and new strategies in fields such as energy savings, the
development of gas and gas condensate reservoirs, improving efficiency in
planning, the implementation of infrastructure projects as well as environmental
protection and safety. In addition, Wintershall Dea runs a successful development
program for Gazprom managers.

Today, the quarter-of-a-century-long cooperation between the two companies
is contributing to the success of the long-lasting German-Russian cooperation, is
valued by both partners alike and will continue to secure efficient partnership in
the future.

    Wintershall Dea in Russia: at a glance
   • Country entry: 1992                                • Thereof gas and oil production:
   • Onshore: Novy Urengoy in Western Siberia,              234 mboe / 56 mboe
      Southern Russia near Volgograd                     • Gas/oil ratio: 81% gas / 19% oil
   • Production (2019): 289 mboe per day

Wintershall Dea GmbH
Corporate Communications
Friedrich-Ebert-Str. 160
34119 Kassel
Germany
Phone +49 561 301-3301
press@wintershalldea.com
www.wintershalldea.com

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LONGSTANDING COMMITMENT AND EFFICIENT PARTNERSHIP - Wintershall Dea
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